Prevention or detection of illegal export of goods [Chapter IV B] :

1. Reason for insertion of this Chapter: Chapter IV B was introduced in the Customs Act to prevent or detect the export of goods illegally out of India.

2. Definitions [Section 11H]: Definitions of some of the terms relevant for this Chapter are given below:

(a) “Illegal export” means the export of any goods in contravention of the provisions of this Act or any other law for the time being in force;

(b) “Intimated place” means a place intimated under sub-section (1), sub-section (2) or sub-section (3), as the case may be, of section 11J;

(c) “Specified area”

includes the Indian customs waters, and

such inland area, not exceeding 100 kms in width from any coast or other border of India, as the Central Government may, having regard to the vulnerability of that area to smuggling, by notification in the Official Gazette, specify in this behalf.

However, where a part of any village, town or city falls within a specified area, the whole of such village, town or city shall, notwithstanding that the whole of it is not within one hundred kms from any coast or other border of India, be deemed to be included in such specified area.

(d) “Specified date”, in relation to specified goods, means the date on which any notification is issued under section 11-I in relation to those goods in any specified area;

(e) “Specified goods” means goods of any description specified in the notification issued under section 11-I in relation to a specified area.

3. Power of Central Government to specify goods [Section 11I]: Central Government is empowered to specify goods by notification in the Official Gazette, having regard to the magnitude of the illegal export of goods of any class or description for the purpose of checking the illegal export or facilitating the detection of goods which are likely to be illegally exported.

At present, acetic anhydride, drug formulations containing codeine or its salts and ephedrine and pseudo-ephedrine have been so notified.

4. Persons possessing specified goods to intimate the place of storage, etc. [Section 11J]

1. Every person who owns, possesses or controls any specified goods on the specified date, the market price of which exceeds `15,000 shall, within seven days from that date, deliver to the proper officer an intimation containing the particulars of the place where such goods are kept or stored within the specified area.

2. Every person who acquires (within the specified area), af ter the specified date, any specified goods, –

(i) the market price of which, or

(ii) the market price of which together with the market price of any specified goods of the same class or description, if any, owned, possessed or controlled by him on the date of such acquisition,

exceeds `15,000 shall, before making such acquisition, deliver to the proper officer an intimation containing the particulars of the place where such goods are proposed to be kept or stored after such acquisition.

3. If any person intends to shift any specified goods, to any place other than the intimated place, he shall, before taking out such goods from the intimated place, deliver to the proper officer an intimation containing the particulars of the place to which such goods are proposed to be shifted.

5. Transport of specified goods to be covered by vouchers [Section 11K]: Transport of specified goods has to be covered by vouchers, in such form and containing such particulars as may be specified by rules made in this behalf .

6. Persons possessing specified goods to maintain accounts [Section 11L]: Every possessor of specified goods is required to maintain accounts in the prescribed form, inter alia, showing details of receipts and disposal.

7. Steps to be taken by persons selling or transferring any specified goods [Section 11M]: Except where he receives payment by cheque drawn by the purchaser, every person who sells or otherwise transfers within any specified area, any specified goods, shall obtain, on his copy of the sale or transfer voucher, the signature and full postal address of the person to whom such sale or transfer is made and shall also take such other reasonable steps as may be specified by rules made in this behalf to satisfy himself as to the identity of the purchaser or the transferee, as the case may be, and if after an inquiry made by a proper officer, it is found that the purchaser or the transferee, as the case may be, is not either readily traceable or is a fictitious person, it shall be presumed, unless the contrary is proved, that such goods have been illegally exported and the person who had sold or otherwise transferred such goods had been concerned in such illegal export .

However, nothing in this section shall apply to petty sales of any specified goods if the aggregate market price obtained by such petty sales, made in the course of a day, does not exceed two thousand and five hundred rupees.

Meaning of “petty sale”  In this section “petty sale” means a sale at a price which does not exceed `1,000.